All of the Following Regarding Accounting for Treasury Stock Under

question 155

Multiple Choice

All of the following regarding accounting for Treasury Stock under U.S. GAAP and IFRS is true except:

• A) U. S. GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock.
• B) Gains are not recognized on retirements of treasury stock under U. S. GAAP.
• C) A company's assets and equity are always reduced by the amount paid for the retiring stock.
• D) Only gains are recognized on retirements of treasury stock under IFRS.
• E) IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock.

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Definitions:

Con Artist

An individual who deceives others by lying or tricking them, often for personal gain.

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, need for excessive attention and admiration, and lack of empathy for others.

Antisocial Personality Disorder

A mental condition in which a person consistently shows no regard for right and wrong and ignores the rights and feelings of others.

Disregard For Rights

A pattern of behavior that shows a lack of respect or concern for the rights and feelings of others, often seen in antisocial personality disorder.